89R10560 JAM-D
By: Goodwin H.B. No. 2425
A BILL TO BE ENTITLED
AN ACT
relating to the purpose of and programs administered by the Texas
State Affordable Housing Corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.553, Government Code, is amended to
read as follows:
Sec. 2306.553. PURPOSES. (a) The public purpose of the
corporation is to perform activities and services that the
corporation's board of directors determines will promote the public
health, safety, and welfare through the provision of adequate,
safe, and sanitary housing primarily for individuals and families
of low income, individuals and families of very low income,
individuals and families of [and] extremely low income, and [for]
persons who are eligible for loans under the home loan program
provided by Section 2306.5621. The activities and services shall
include engaging in mortgage banking activities and lending
transactions and acquiring, holding, selling, or leasing real or
personal property.
(b) The corporation's primary public purpose is to
facilitate the provision of housing by issuing qualified 501(c)(3)
bonds and qualified residential rental project bonds and by making
affordable loans to individuals and families of low income,
individuals and families of very low income, individuals and
families of [and] extremely low income, and [to] persons who are
eligible for loans under the home loan program provided by Section
2306.5621. The corporation may make first lien, single family
purchase money mortgage loans for single family homes [only] to
individuals and families of low, very low, and extremely low income
only if the individual's or family's household income is not more
than the greater of 60 percent of the median income for the state,
as defined by the United States Department of Housing and Urban
Development, or 60 percent of the area median family income,
adjusted for family size, as defined by that department. The
corporation may make loans for multifamily developments if:
(1) at least 40 percent of the units in a multifamily
development are affordable to individuals and families with incomes
at or below 60 percent of the median family income, adjusted for
family size; or
(2) at least 20 percent of the units in a multifamily
development are affordable to individuals and families with incomes
at or below 50 percent of the median family income, adjusted for
family size.
(c) To the extent reasonably practicable, the corporation
shall use the services of banks, community banks, savings banks,
thrifts, savings and loan associations, private mortgage
companies, nonprofit organizations, and other lenders for the
origination of all loans contemplated by this subchapter and assist
the lenders in providing credit primarily to individuals and
families of low income, individuals and families of very low
income, individuals and families of [and] extremely low income, and
persons who are eligible for loans under the home loan program
provided by Section 2306.5621.
SECTION 2. Section 2306.555(d), Government Code, is amended
to read as follows:
(d) All of the mortgage banking operations shall be
dedicated to the furtherance of facilitating affordable housing
finance primarily for the benefit of:
(1) individuals and families of low, very low, and
extremely low income who, generally, are not afforded housing
finance options through conventional lending channels; and
(2) persons who are eligible for loans under the home
loan program provided by Section 2306.5621.
SECTION 3. Section 2306.5621(a), Government Code, is
amended by amending Subdivision (2) and adding Subdivisions (17),
(18), and (19) to read as follows:
(2) "Home" means a dwelling in this state in which a
fire fighter, corrections officer, county jailer, public security
officer, peace officer, municipal employee, nurse, social worker,
professional educator, veteran, or person defined as emergency
medical services personnel under this section intends to reside as
the borrower's principal residence.
(17) "Municipal employee" means a permanent,
full-time employee of a municipality.
(18) "Nurse" has the meaning assigned by Section
303.001, Occupations Code.
(19) "Social worker" has the meaning assigned by
Section 505.002, Occupations Code.
SECTION 4. Sections 2306.5621(b), (c), (d), (f), and (h-1),
Government Code, are amended to read as follows:
(b) The corporation shall establish a program to provide
eligible persons [fire fighters, corrections officers, county
jailers, public security officers, peace officers, emergency
medical services personnel, professional educators, and veterans]
with low-interest home mortgage loans.
(c) To be eligible for a loan under this section, at the time
a person files an application for the loan, the person must:
(1) be a:
(A) fire fighter, corrections officer, county
jailer, public security officer, peace officer, municipal
employee, nurse, social worker, veteran, or person defined as
emergency medical services personnel under this section; or
(B) professional educator who is employed by a
school district or is an allied health or professional nursing
program faculty member in this state;
(2) reside in this state; and
(3) have an income of not more than 140 [115] percent
of area median family income, adjusted for family size, or the
maximum amount permitted by Section 143(f), Internal Revenue Code
of 1986, whichever is greater.
(d) The corporation may contract with other agencies of the
state or with private entities to determine whether applicants
qualify as fire fighters, corrections officers, county jailers,
public security officers, peace officers, municipal employees,
nurses, social workers, emergency medical services personnel,
professional educators, or veterans under this section or otherwise
to administer all or part of this section.
(f) The board of directors of the corporation shall adopt
rules governing:
(1) the administration of the program;
(2) the making of loans under the program;
(3) the criteria for approving mortgage lenders;
(4) the use of insurance on the loans and the homes
financed under the program, as considered appropriate by the board
to provide additional security for the loans;
(5) the verification of occupancy of the home by the
fire fighter, corrections officer, county jailer, public security
officer, peace officer, municipal employee, nurse, social worker,
professional educator, veteran, or person defined as emergency
medical services personnel as the borrower's principal residence;
and
(6) the terms of any contract made with any mortgage
lender for processing, originating, servicing, or administering
the loans.
(h-1) To fund home mortgage loans for eligible persons [fire
fighters, corrections officers, county jailers, public security
officers, peace officers, emergency medical services personnel,
professional educators, and veterans] under this section, the
corporation may use any proceeds received from the sale of bonds,
notes, or other obligations issued under the home loan program
provided by this section, regardless of any amendments to the
eligibility standards for loans made under the program and
regardless of when the corporation received the proceeds from those
bonds, notes, or other obligations issued under the program.
SECTION 5. This Act takes effect September 1, 2025.